Cambridge Past Paper Questions
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The statements that follow relate to possible gains from an increase in free trade. Which gain is least certain to result in the short run?
Which combination correctly classifies an expansionary fiscal measure and its impact on a budget deficit? fiscal policy | budget deficit ---|--- A...
In 2018 the United States (US) government introduced tariffs on a wide range of imports from China. Which type of policy was the US government ado...
During the Great Depression the US government believed that deflation was caused by a collapse in the prices of stock and other assets, reducing th...
Nigeria discovered oil 50 years ago and is now the world's sixth biggest oil exporter. The recent increase in global oil prices has had a very larg...
There is increasing concern about the impact of foreign holidays on the environment of the host country.
Argentina raises interest rates to 40 per cent [Figure 1.1] On 4 May 2018, Argentina's central bank raised interest rates to 40%. The day before th...
In summer 2018, many countries suffered a water shortage because of a long spell of very dry weather.
The growing problem of plastic waste It has been estimated that, globally, consumers buy a staggering one million plastic bottles every minute and ...
The price elasticity of supply for a new smartphone is estimated at 0.8 in the short run and 1.5 in the long run.
The annual rate of inflation in an economy increased sharply and unexpectedly.
A medical team in a refugee camp provides vaccinations for children to prevent an outbreak of an infectious disease.
The diagram shows the average cost curves for a firm.
An economist undertakes a cost-benefit analysis of the pollution resulting from a manufacturing process.
An individual consumes goods X and Y. The marginal utility of good X is positive and falling. The consumer is at the point where the ratio of the m...
To analyse a consumer's preferences, an indifference curve represents possible combinations of goods X and Y. The diagram shows a consumer's indiff...
In the short run, a firm produces an extra unit of output.
The diagram shows the cost curves of a firm operating in a perfectly competitive market.
The table shows a firm's total and marginal costs.
An electronics firm, which began as a semiconductor firm making simple memory chips, has used continuous research and investment to emerge as an in...
Which diagram shows a monopolistically competitive firm in long-run equilibrium?
When will a cartel find it most difficult to fix the market price of its product?
The diagram shows the cost and revenue curves of a monopoly.
Which policy is not designed to correct a market failure?
A chemical firm produces toxic fumes that impose costs on society. The diagram shows the free market equilibrium of the firm's product at P1Q1. The...
The level of benefit paid to an individual receiving a means-tested benefit depends on the individual's
The diagram shows two Lorenz curves.
A firm is operating in a perfectly competitive market.
Labour from developing countries often migrates to developed countries and finds jobs.
The African Union consists of 55 developing countries. They agree to adopt a free-trade model to boost trade between member countries.
Young workers find it especially difficult to get a job during an economic recession. A government introduces a transfer payment for those seeking ...
The diagram shows the annual percentage (%) change in employment and output in the UK private sector between 2000 and 2012.
The table shows the levels of consumption expenditure and savings for given family incomes.
During a year, a country's national income in money terms increased by 3%, prices increased by 4% and total population increased by 1%.
What does the accelerator principle explain?
An individual's demand curve for an active money balance will move to the left if there is an increase in the
A country's central bank buys government securities from the private sector.
What belief do Keynesians and Monetarists share?
Which statement is most likely to be made by an economist from the Keynesian school?
The US government has been using a policy of quantitative easing to increase economic growth.
In 2018 the US imposed a tariff on steel imports.
The diagram shows a firm operating in monopolistic competition. [Figure 2.1]
Four bus companies control more than two-thirds of the market in a country. Critics claim that these companies fix prices on some routes to maximis...